VOT Dividend Type Payments

VANGUARD MID-CAP GROWTH ETF dividend

Although VOT has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on VANGUARD MID-CAP GROWTH ETF to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Fri 11:10 AM ET):

VANGUARD MID-CAP GROWTH ETF (VOT)
Bid Ask Last Change Volume P/E Market Cap
132.15 132.22 132.14 +0.58 19K - 124B

VOT Dividend-Like Income Using Covered Calls

With VOT at 132.14, here's a table showing how big the annual "dividend" (ie. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield Annual Premium Cents/Day
3% 3.96 1.1
5% 6.61 1.8
10% 13.21 3.6

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On VOT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 136.00 0.40 29 1.4 3.78 (2.9%)
Dec 21 136.00 1.10 64 1.7 3.78 (2.9%)
5% Yield On VOT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 135.00 1.05 29 3.6 2.78 (2.1%)
Dec 21 135.00 1.50 64 2.3 2.78 (2.1%)
10% Yield On VOT Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Nov 16 135.00 1.05 29 3.6 2.78 (2.1%)
Dec 21 133.00 2.40 64 3.8 0.78 (0.6%)

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Top 10 Open Interest For Nov 16 Expiration     Top 5 High Yield
1.SPY dividend 6.SPX dividend   1.UVXY dividend
2.EWZ dividend 7.FXI dividend   2.SKX dividend
3.EEM dividend 8.VXX dividend   3.CLF dividend
4.PBR dividend 9.IWM dividend   4.CGC dividend
5.QQQ dividend 10.BAC dividend   5.SNAP dividend

Want more examples? VOOV Dividend | VOX Dividend